Here we present a brief outline of the procedure for buying land and houses in Thailand. Please read the five steps listed below.
Step 1 Price
In Thailand, we generally encourage our clients to negotiate together.
From a cultural standpoint, it is quite normal for buyers to try and 'knock down' the asking price, and the seller will not be offended if you table an offer that is lower than he can accept.
We would however, strongly suggest that you ask ourselves, your agents at Chiangmailiving.com, for information and advice before making an offer.
This is simply because each piece of real estate has it's own unique characteristics and history.
Step 2 Making the offer
You are free to make an offer in any way you choose. However, our advice is to table your first offer through ourselves.
As agents we already have a working relationship with the owners, and any potential cultural or language barriers are thus easily overcome.
Step 3 Reaching agreement.
As negotiations proceed towards agreement on price, and you begin to have a good idea of where each other stands, this is often a good time for some face-to-face discussion between the buyer and seller.
As your agents, we can arrange the meetings, or you can do it yourselves.
We can also provide simultaneous translation for English, Thai and French.
Alternatively, you can just ask us to make the final offer for you.
Step 4 Securing the deal/making a deposit.
Once agreement has been reached on price, you will want to make sure that the real estate remains yours to buy.
The only real way to guarantee that the property does remain in your hands is to put down a deposit.
The deposit is usually 3-5 % of the asking price, although there is room for negotiation on this.
Once the amount is agreed upon by all parties, contracts are signed that confirm the details for both the seller and the buyer.
The contract would thus include:
a. The deposit amount and mode of payment.
b. The agreed price of the real estate, agreed date and mode of payment.
Both the seller and buyer are now contractually bound.
A representative from Chiang Mai Law and Accounting Office will be present at all contract signings.
This is to protect both our own interests as well as those of the buyer and seller.
Step 5 Transferring the title deeds.
All real estate that changes hands in Chiang Mai must be approved by the government land offices here in the city. Government legal representatives, in the presence of both the buyer and seller, thus conduct the land transfer process transparently. We will of course offer to be present ourselves at the Land Offices, as most of our clients prefer that we be there with them.
We hope you found this brief outline useful. Please do not hesitate to contact us by email or telephone should you have any questions on this topic.